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Money Masters part 2

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But secondly: we must act! We must take back the power to issue our own money. Issuing our own money is not a radical solution, I want to stress that. It's the same solution used at different points in U.S. history by men like: Benjamin Franklin, Thomas Jefferson, Andrew Jackson, Martin van Buren and Abraham Lincoln. So to sum it up: in 1913 congress gave an independent central bank, deceptively named the Federal Reserve, a monopoly over issuing America´s money. And the debt generated by this quasi-private corporation is what is killing the American economy. Though the Federal Reserve is now the most powerful central bank in the world it was not the first. So where did this idea come from? To really understand the magnitude of the problem, we have to travel back to Europe. Just who are these money changers James Madison spoke of? In the bible, 2000 years ago, Jesus drove the money changers from the temple. It was the only time Jesus used force during his ministry. What were money changers doing in the temple? When Jews came to Jerusalem to pay their temple tax, they could only pay it with a special coin: the half-shackle of the santuary. This was a half ounce of pure silver about this size. It was the only coin at that time which was pure silver and of assured weight without the image of a pagan emperor. Therefore to Jews, the half shackle was the only coin acceptable to God. But these coins were not plentiful, the money changers had cornered the market on them. Then they raised the price just like any other commodity, to whatever the market would bare. In other words, money changers were making exorbitant profits because they held a virtual monopoly on money. The Jews had to pay whatever they demanded. To Jesus, this totally violated the sanctity of God´s house. But the money changing scam did not originate in Jesus´ day. Two hundred years before Christ, Rome was having trouble with money changers. Two early Roman emperors had tried to diminish the power of the money changers by reforming usury laws and limiting land ownership to 500 acres. They were both assassinated. In 48 B.C. Julius Ceasar took back the power to coin money from the money changers and minted coins for the benefit of all. With this new plentiful supply of money, he built great public works projects. By making money plentiful Ceasar won the love of the common man. But the money changers hated him. Some believe, this was an important factor in Ceasar's assassination. One thing is for sure, with the death of Ceaser came the demise of plentiful money in Rome. Taxes increased, as did corruption. Just as in the case of America today, usury and debased coin became the rule. Eventually the Roman money supply was reduced by 90%. As a result the common people lost their lands and their homes just as is about to happen soon in America. With the demise of plentiful money, the masses lost confidence in the Roman government and refused to support it. Rome plunged into the gloom of the Dark Ages. A thousand years after the death of Christ, money changers; those who loan out and manipulate the quantity of money, were active in Medieval England. In fact they were so active that acting together, they could manipulate the entire English economy. These were not bankers per se. The money changers generally were the goldsmiths. They were the first bankers because they started keeping other people's gold for safekeeping, in their vaults. The first paper-money was merely a receipt for gold, left at the goldsmith. Paper money caught on 'cause it was more convenient than carrying around a lot of heavy gold and silver coins. Eventually goldsmiths noticed that only a small fraction of the depositors ever came in and demanded their gold at anyone time. Goldsmiths started cheating on the system. They discovered that they could print more money than they had gold and usually, noone would be the wiser. Then they could loan out this extra money and collect interest on it. This was the birth of fractional reserve banking; that is loaning out many times more money than you have assets on deposit. So, if a 1000 dollars in gold were deposited with them, they could loan out about 10.000 dollars in paper money and draw interest payments on it and noone would ever discover the deception. By this means, goldsmiths gradually accumulated more and more wealth and used this wealth to accumulate more and more gold. Today, this practise of loaning out more money than there are reserves is known as 'fractional reserve banking'. Every bank in the United States is allowed to loan out atleast 10 times more money than they actually have. That's why they get rich on charging, let's say 8% interest. It's not really 8% per year which is their income, it's 80%. That's why bank buildings are always the largest in town. But does that mean that all interest or all banking should be illegal? Hardly. In the Middle Ages, canon law, the law of the Catholic church forbade charging interest on loans. This concept followed the teachings of Aristotle as well as of Saint Thomas Aquinas. They taught that the purpose of money was to serve the members of society to facilitate the exchange of goods needed to lead a virtuous life. Interest, in their belief, hindered this purpose by putting an unnecessary burden on the use of money. In other words, interest was contrary to reason and justice. Reflecting Church Law in the Middle Ages, Europe forbade charging interest on loans and made it a crime called 'usury'. As commerce grew and therefore opportunities for investment arose in the late Middle Ages it came to be recognised that to loan money, had a cost for the lender. Both in risk and in lost opportunity. So some charges were allowed but not interest per se. But all moralists, no matter what religion, condemn fraud, oppression of the poor and injustice as clearly immoral. As we will see, fractional reserve lending is rooted in a fraud results in widespread poverty and reduces the value of everyone else's money. The ancient goldsmiths discovered that extra profits could be made by growing the economy between easy money and tight money. When they made money easier to borrow, then the amount of money in circulation expanded. Money was plentiful. People took out more loans to expand their businesses. But then the money changers would tighten the money supply. They would make loans more difficult to get. What would happen? Just what happens today. A certain percentage of people could not repay their previous loans and could not take out new loans to repay the old ones. Therefore, they went bankrupt and had to sell their assets to the goldsmiths for pennies on the dollar. The same thing is still going on today. Only today we call this "rowing of the economy" "up and down the business cycle" Like Julius Caesar, King Henry I of England finally resolved to take the money power away from the goldsmiths around 1100 AD. Henry could have used anything as money: seashells, feathers, or even yak dung as is often done in remote Tibetan provinces. But he invented one of the most unusual money system in history. It was called the tally stick system. Here I have one of the few surviving examples of this form of British Money. Which lasted 726 years, until 1826. A tally stick. The tally system was adopted to avoid the monetary manipulation of the goldsmiths. Tally sticks were fabricated out of sticks of polished wood. Notches were cut along one edge of the stick to indicate the denomination. Then the tally tick was split lengthwise through the notches so that both pieces still had a record of the notches. The king kept one half to protect against counterfeiting. Then he would spend the other half into the economy and they would circulate as money. This particular tally stick was huge; it represented 25.000 pounds.

Video Details

Duration: 9 minutes and 56 seconds
Country: Netherlands
Language: English
Producer: Bill Still
Director: Bill Still
Views: 189
Posted by: tyg1989 on Apr 6, 2011

Money Masters part 2

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